Supply chain crisis: What strategies are direct sales businesses applying in Peru?

One of the sectors that has also been seriously affected by the crisis in is the catalog sales business in . According to Miguel Valencia, Sokso supply chain manager, at the beginning of January and February 2020, the purchase of imported products was concentrated in the Chinese and Brazilian markets, at 70% and 30%, respectively.

Currently, this has been balanced at 50% in each country and accessories and lingerie from recognized brands have been incorporated in the national market.

“The restriction of products and supplies for national production had a direct impact on the increase in prices of materials. This continues to be a challenge for the sector in the second half of this 2022, due to the fact that it is difficult for national footwear suppliers or manufacturers to comply with their work on time,” said the expert.

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In this sense, Valencia commented on some of the strategies that were applied to mitigate the impact of this crisis: completely reformulate the supply of products and avoid breaks in stock; venture into new markets and product categories, and increase the number of company catalogs.

These commercial, price and profitability management strategies made Sokso’s growth in 2021 more than 15% compared to the previous year. “A satisfactory result, since many catalog sales businesses projected, at the end of that same year, less than 60% in sales,” Valencia said.

Finally, Miguel Valencia explains that one of the advantages of catalog sales is that various sales strategies can be created digitally, offering a set of products that are probably in the inventory of their stores without much rotation, or take advantage of some seasonal promotion.

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